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news.Kazia Therapeutics has closed an oversubscribed public offering that could provide the company with up to $120m in gross proceeds if all milestone-linked warrants are exercised, aimed primarily at funding clinical development of paxalisib.
Kazia’s other development programmes include EVT801, NDL2, and MSETC, with research underway across several solid tumour types. Credit: Zolnierek_photography / Shutterstock.com.
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These proceeds will support the planned and ongoing studies of Kazia’s lead investigational therapy, paxalisib, in triple-negative breast cancer, hormone receptor positive/human epidermal growth factor receptor 2 negative (HR+/HER2-) breast cancer, and proficient mismatch repair (pMMR) colorectal cancer.
Kazia also noted the funds may go toward working capital and general corporate purposes.
Paxalisib is being studied in various cancers and has received several regulatory designations from the US Food and Drug Administration (FDA), including orphan drug and fast track.
The offering generated $40m in upfront gross proceeds at closing. The oncology-focused company structured the offering in multiple tranches.
It comprised 2,580,000 American Depositary Shares (ADSs), each representing 500 ordinary shares, or pre-funded warrants in place of ADSs.
The package included Series A Warrants exercisable at $17.825 per ADS, a 15% premium to the $15.50 offering price, tied to the company’s Stage IV triple-negative breast cancer data readout expected in the second half of 2027.
With a $19.375 per ADS exercise price, a 25% premium, Series B Warrants are connected to HR+/HER2- breast cancer data expected in the first half of 2028.
If both series of milestone-linked warrants are exercised in full, Kazia would receive an estimated additional $80m, for total potential gross proceeds of approximately $120m.
All securities in the offering were sold by Kazia, with institutional investors such as ADAR1 Capital Management, Columbia Threadneedle Investments, Lynx1 Capital Management, Marshall Wace, and Pointillist Family Office participating.
The combined public offering price was $15.50 per ADS with accompanying Series A and B Warrants, or $15.4999 for each pre-funded warrant plus the warrants.
The $40m raised is stated as gross proceeds, before underwriting discounts, commissions, and offering expenses are deducted.
Other development programmes at Kazia include EVT801, NDL2, and MSETC, with research underway across several solid tumour types.
